Frasers Hospitality has completed its first ground-up investment and development project in Japan with the official opening of Yotel Tokyo Ginza.
Situated in the upscale shopping, dining and entertainment district of Ginza, yet in close proximity to the business areas of Shimbashi and Shiodome, the new hotel is the Yotel brand’s first property in the country. With 244 keys, it features a fitness centre, a robotic concierge, motorised “smart beds,” digital check-in and check-out facilities, and a bar-restaurant called Komyuniti that acts as a social hub and co-working space.
The property marked its official opening in June with a party for some 200 guests featuring a taiko drum performance, a kagami biraki (sake barrel breaking ceremony), a DJ party, and F&B that included signature drinks and “global bites”. Guests were given Yotel-branded passports and invited to inspect the rooms via a series of interactive experiences, including arcade games and hand massages, all under the theme of Yotel to the World: Non-Stop.
Eu Chin Fen, CEO of Frasers Hospitality, said the hotel’s opening underscores Frasers Hospitality’s “commitment to deepening our hospitality investments in existing markets while optimising our portfolio for sustained performance”, adding that the company’s collaboration with Yotel “is well-positioned to set a new benchmark in Japan”.
Jason Leong, chief investment officer at Frasers Hospitality, told TTG Asia that the development is the culmination of the right time, right location, and right brand.
“We’ve been looking at Japan for a very long time,” Leong said, noting that Tokyo and Osaka are among the key cities in Asia for the company.
Within those cities, Leong prioritises sites where properties could cater to business travellers as well as FITs because the combination is “what we’re good at” as a company.
“We’re always thinking about our Unique Selling Proposition because real estate is about getting the best cash flow,” he explained.
The site in Ginza presented an opportunity as the area is popular with international tourists as well as the local market, while also being close to offices and lots of F&B, he said. The next step was choosing an operator.
The company’s approach to investment is “brand-agnostic,” Leong explained, noting that Yotel was chosen from many international brands based on the business model: who will stay, what is the price point of the property, what are the site constraints such as height and footprint, and so on.
Yotel was chosen as the three-star lifestyle brand is capable of charging a four-star rate due to its offering of comfort, including well-appointed rooms that make best use of the space available, convenience and technology.
The partnership with Yotel in Japan builds on Frasers Hospitality’s inaugural acquisition of premium rental apartment assets in Japan in 2023. Situated in Namba, a commercial district in Osaka, the 124-unit property is a freehold asset acquired through a joint venture with Alyssa Partners.
While Frasers Hospitality would like to increase its foothold in Japan, Leong recognises that it is a competitive market and the opportunity has to be right.
The company has an expanding portfolio in North Asia, with almost 3,400 units in 16 properties across Japan, China and South Korea.
